Greenwashing Complaint Filed Against Canadian Fossil Fuel Companies
(Bloomberg) -- Canadian energy giants Cenovus Energy Inc. and Enbridge Inc. are facing a greenwashing complaint by an investor group that accuses the companies of misleading disclosures over emissions targets.
Investors for Paris Compliance (I4PC) accused the oil sands producer and the pipeline giant of “systematic greenwashing” in a complaint the group said it filed Tuesday with the Alberta Securities Commission. The group said in a release that both companies are facilitating the expansion of fossil fuel supplies while claiming a commitment to zeroing out emissions, all while failing to allocate “more than a fraction” of capital expenditure to reaching net zero. Both companies engage in “overly promotional” environmental disclosures, the group said.
“We hope to see the ASC compel Cenovus and Enbridge to update their disclosures to clearly communicate the shortcomings of their respective net zero commitments, and to stop insinuating alignment of their commitments with independent best practices,” Michael Sambasivam, senior analyst at I4PC, said in an email.
Cenovus didn’t respond to a request for comment. In a statement, Enbridge said it is committed to pursuing its net-zero goal and that it has reduced absolute emissions from its operations by 22% compared to a 2018 baseline. “We stand behind the information we share in our reports and communications,” the company said.
Canada’s previous government, under former Prime Minister Justin Trudeau, pushed through federal legislation called C-59, allowing private parties to sue companies for misleading environmental representations. But the investor group chose to file its complaint in Alberta initially, instead of through the federal Competition Bureau.
“We view going through the Securities Commission as being the first step in an escalating engagement,” Sambasivam said by phone. “That being said, I think we’re keeping C-59 in our toolbelt.”
The Alberta Securities Act prohibits misleading or untrue statements by companies, I4PC said in its filing. “Lackluster enforcement of securities law has led to the current situation where oil and gas companies clearly misaligned with net zero are claiming otherwise, misleading investors who often have their own net zero commitments to uphold,” the group wrote.
Under the act, the commission has the power to compel changes in how companies disclose information and to fine those that fail to comply.
Cenovus and Enbridge have both set the target of achieving net-zero emissions from their operations by 2050. A group called the Pathways Alliance, comprised of Cenovus and five other oil sands companies, plans to invest C$16.3 billion ($11.8 billion) in carbon capture and sequestration, to reduce an expected 22 million metric tons of emissions by 2030.
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